Question: Consider two projects with the following cash flow sequences with a 10% MARR: n Proyecto A Proyecto B 0 - $ 100,000.00) - $100,000.00 1

Consider two projects with the following cash flow sequences with a 10% MARR:

n Proyecto A Proyecto B
0 - $ 100,000.00) - $100,000.00
1 $ 10,500.00 $ 70,000.00
2 $ 60,000.00 $ 50,000.00
3 $ 80,000.00 $ 20,500.00

-Calculate the NPV of each alternative. Which one would you select? -Calculate the IRR of each project. Which one would you select? -Apply the interpolation formula for the winning IRR

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